The electric vehicle (EV) market in the United States has seen a dramatic shift in recent years. From scarcity to plenty, the landscape has changed significantly, but not without its challenges.
Consumer demand for EVs has hit a snag. Despite a 75% increase in last year’s new vehicle inventory, interest in EVs remains a significant hurdle for both production and sales. The inventory of EVs is double that of gas cars, and while sales are up, this trend is unlikely to continue.
Automakers are uncertain about the future. The dramatic change from scarce to plenty has left them navigating uncharted waters. The problem isn’t production; it’s selling. Several new factors, not present in traditional gas vehicles, are contributing to this uncertainty. Charging infrastructure is not widely accessible, especially in more rural and suburban areas, and safety concerns persist. Furthermore, EVs are often priced similarly to luxury vehicles, which is a turn-off for many consumers, who see the cost as “a wash”, since any savings in the form of fuel consumption may be negated by the MSRP.
To combat these issues, automakers and dealerships are turning to incentives. However, supply still outpaces demand, and the lack of infrastructure remains a significant barrier. Dealers share these apprehensions, with roughly 50% expressing interest in selling EVs. One promising development is the ability to transfer tax credits to dealerships at the time of purchase. Consumers can use up to $7500 as a down payment, potentially making EVs more affordable and desirable for a broader range of buyers.
The future of Electric Vehicles still seems a bit uncertain, and with the potential for a flood of new and lightly used EV’s in the near future, the foresight is that much foggier.